Gitterman Wealth Management is an SEC-registered financial advisor firm headquartered in Edison, New Jersey. It has been in business since 2010. It also runs offices in Hamilton, New Jersey and New York, New York.
The firm has 26 employees on staff and more than $440 million in assets under management (AMU). It mostly services indivuduals with modest incomes. In fact, only six of its clients are high-net-worth individuals. The firm offers wealth management services around several financial area, including retirement and estate planning, as well as credit and debt management.
Gitterman Wealth Management Background
A group of investing professionals, including current principal owner Jeffrey L. Gitterman, founded Gitterman Wealth Management in April 2010. The firm aims to help families manage wealth and plan for retirement.
Gitterman Wealth Management is also known for serving the higher education marketplace. In addition, it considers itself a leader in the world of socially responsible investing. By leveraging its research-heavy approach and market savvy , the firm offers its clients sustainable investing services. In fact, it hosted the 2018 Sustainable Investing Conference at the United Nations.
What Types of Clients Does Gitterman Wealth Management Accept?
Gitterman Wealth Management mostly serves non-high-net-worth individuals. This demographic makes up the bulk of the firm’s clients. It currently works with more than 900 such individuals in addition to six high-net-worth investors. It also serves pension and profit-sharing plans, trusts, estates, charitable organizations, corporations, businesses and other investment advisors.
Gitterman Wealth Management Minimum Account Size
According to SEC records, Gitterman Wealth Management requires no minimum portfolio investment or minimum annual fee. However, some of its independent managers may impose stricter account requirements and fee structures.
Services Offered by Gitterman Wealth Management
Gitterman Wealth Management mostly offers financial planning and portfolio management services for individuals as well as small businesses. However, it also provides the following:
Portfolio management for institutional clients
Selection of other advisors including private fund managers
Portfolio management for large corporations
Furthermore, the firm offers financial consulting services around the following
- 401(k) and 403(b) plans
- Estate planning and conversion
- Year-end tax strategy
- Charitable giving
- Educational funding
- 529 College Savings Plans
- Employee stock options
- Marital and divorce planning
Gitterman Wealth Management runs client assets through model portfolios, its own separately managed account and independent managers. It builds model portfolios based on short- to long-term investment goals before passing them onto managers based on their perceived ability to meet those needs.
The firm tends to invest in broad asset classes including the following:
- Fixed income
- Real assets
Gitterman Wealth Management primarily invests client assets across mutual funds, exchange-traded funds (ETFs), standalone debt and equity securities.
It also offers access to independent account managers and the securities components of variable annuities and variable life insurance contracts.
Gitterman Wealth Management Investment Philosophy
The underlying factors Gitterman Wealth Management depends on in portfolio creation rely heavily on Modern portfolio Theor, which stresses diversified portfolios that deliver optimal returns based on an investor's risk tolerance. These include the following metrics:
- Alpha: Gauge of performance on a risk-adjusted basis
- Beta: Indication of market volatility as it relates to broad market conditions
- Standard Deviation: Volume of historic volatility
- R-Squared: Measure of price movements as it relates to a benchmark index
- Turnover Ratio: Tax-efficiency and capital gain exposure
It also considers third-party research in its analysis process. Gitterman Wealth Management may adjust these models if market conditions or other factors make such changes necessary.
In addition, Gitterman Wealth Management deploys a due diligence program to evaluate prospective and independent managers. These include on-site visits, as well as annual questionnaires seeking performance and compliance associated documentation.
Fees Under Gitterman Wealth Management
Gitterman Wealth Management provides services on a fee-basis. These include hourly or fixed fees as well as percentages of assets under management (AUM) depending on the type of services rendered.
When it comes to standalone financial planning and consulting services, the firm charges fixed and/or hourly fees, which you can negotiate. However, Gitterman Wealth Management claims these typically stretch from $1,000 to $10,000 on a fixed-fee basis or from $300 to $500 on an hourly basis. The advisor determines these fees based on the scope of services provided, as well as on the professional delivering them.
Furthermore, Gitterman Wealth Management charges fees for wealth management services based on a percentage of assets under management. These fees can range from 0.50% to 1.25% based on the size of the account. The firm prorates these fees and charges them monthly based on the average daily balance of AUM during the preceding month. In some cases, it charges these fees on a quarterly basis. Under its sole discretion, Gitterman Wealth Management may charge management fees based on the following factor:
- Anticipated future earning capacity
- Related accounts
- Anticipated future additional assets
- Pre-existing client status
In addition, some of the firm’s Supervised Persons in their individual capacity may offer securities brokerage services and insurance products on a commission basis. These individuals may receive ongoing 12b-1 fees from mutual fund companies during the time clients are invested in these funds.
Gitterman Wealth Management may recommend that clients work with specific broker-dealers and other financial institutions. These clients may incur commission charges from these financial institutions and other third parties.
Those working with Gitterman Wealth Management’s Independent Managers should refer to the individual’s disclosure brochure for a full outline of fees rendered.
What to Watch Out For
Other than the services listed above, Gitterman Wealth Management has not reported actively engaging in other business activities.
However, it did disclose it has other financial industry affiliations, including those with broker dealers and insurance companies or agencies. This may provide an incentive to recommend keeping assets invested in such entities. In fact, it generally recommends clients use the brokerage and clearing services of Fidelity Institutional Wealth Services, a leading provider of services to registered investment advisors (RIA). The firm shares a similar relationship with Vanderbilt Securities, an SEC-registered broker-dealer.
A potential conflict of interest also may arise when the firm recommends that clients purchase securities that pay commissions or other additional compensation to its supervised persons. However, Gitterman Wealth Management claims it has has “procedures in place to ensure that any recommendations made by such supervised persons are in the best interest of clients.”
Clients may take on certain charges imposed by financial institutions and other third-party clients, including those related to mutual fund or ETF investments in your account. These would be disclosed in the fund prospectus. These charges stand in addition to Gitterman Wealth Management fees.
Gitterman Wealth Management reported no disclosures on its most recent Form ADV, a form advisory firms must fill out to maintain their registration status with the SEC.
Opening an Account with Gitterman Wealth Management
The best way to open an account is by stoping by one of Gitterman Wealth Management's offices to discuss its services. You can also reach the firm by dialing the following numbers:
Edison, NJ: 848-248-4405
New York, NY: 212-243-5760
Hamilton, NJ: 609-890-0470
Where Is Gitterman Wealth Management Located?
Gitterman Wealth Management operates two offices in New Jersey. These are in Edison and Hamilton. The firm also manages a branch in New York City.
Tips On Investing
- Investing can mean great returns, but it can also mean great risk. That’s why working with the guidance of a qualified financial advisor is one of the best decisions you can make. But not all are created equal. Some are held to higher standards based on their certifications. Fiduciaries, for example, legally must make advice in your best interest. But not each financial advisor or financial planner has to. That’s why it’s important to look around. We can help with our SmartAsset financial advisor matching tool. It gives you access to up to three financial advisors in your area. On this platform, you can also review their credentials, qualifications and any certifications before you make a decision.
- When investing, always remember to keep diversification in mind. This strategy can help you in the event market turns cause a specific asset class to undergo major loss. You can use our asset allocation calculator to help you find the right asset mix based on your risk tolerance.